From past few months we see that a Big public holder app of China Tik Tok had banned by India due to security issues and Bytedance company which owns Tik Tok try several times to remove ban but Indian government not ready to remove because it has already trust issues.Now according to recent reports USA also wants a ban on Chinese app Tik Tok so, American President said that if no US holde holds the rights of Chinese app Tik Tok by september 15 than they will ban Tik Tok in US. Many news comes that Microsoft is in talks with Bytedance company to acquire Tik Tok and they other operations in US, Austraila,Canada and New Zealand.If tik tok fails to get any share holder than US will apply a full ban on Tik Tok like India.
Trump signs executive order that will bar transactions with TikTok's parent company Bytedance. So what happened Microsoft hadn't finalize the deal with TikTok.
Now news comes that Twitter wants to acquire TikTok now we will discuss can Twitter is able to acquire TikTok financially as Twitter already made a App like TikTok named VINES but they remove this app from services because its does not gives much profit as they want so now they are thinking to acquire TikTok.
Twitter Inc. has preliminary talks about a potential combination with TikTok ,the popular video sharing app that the Trump administration has declare a national security threat due to its Chinese ownership according to people familiar with the matter.This is the first time when US-China relationship are more worse in past years and reason all knows well.
Does Twitter Stands a Chance?
Most of the people said that no Twitter can't be able to buy TikTok because Microsoft is Big Software Giant and Twitter doesn't. As we know most of the desktop users prefer Windows as compared to other Operating System which was developed by Microsoft and many other apps Microsoft people are still using like Microsoft Teams which is now in Trend for Online classes and other meetings.
Can Twitter financially able to buy TikTok?
It isn't clear what is evaluation of Twitter in US operations would be but it estimates that the ten dollars which raises questions about how twitter would finance deal. Twitter market capitalization is about $29 billion and Microsoft's more than $1.6 trillion. Twitter would need external help , should need from external companies like a good investor is Silver lake who can help twitter.
Twitter has been lose from past years but from past 2 years Twitter is in profit and start making a consistent profit but reported a $1.23 billion loss in the latest quarter. Twitter reported $7.8 billion in cash and short-term investment as June , compared with more than $136 billion for Microsoft.This is another reason no twitter can not buy TikTok.
From many times Trump-Twitter are not good as Trump says Twitter is labeling his twits.
But one advantage is with Twitter that Twitter is free from AntiTrust.Twitter has reasoned that it would be unlikely to face the same level of antitrust scrutiny as Micorsoft or other potential bidders,said people familiar with the discussions. Technology companies such as Google , Facebook Apple and Amazon have been under the radar of the government in many countries for being big spenders and trying to steamroll competition by either buying them or pushing other vendors to avoid working with their competitors. So anti-trust scrutiny is very low this will help twitter to buying tiktok and operate this in US.Final challenge posed by Trump US government should receive a very big proportion of the sale price.
For twitter , this deal could help jump start a social media company that has struggled to find its footing despite widespread use of its main platform.
What do you think, Twitter can buy TikTok or not?
JAI HIND
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